Fraud in the home-services sector may be far more widespread than official figures suggest. A recent study has found that a majority of urban consumers who fall victim to scams involving plumbers, electricians, carpenters, and appliance repair technicians never report the incidents to any authority. According to the survey, nearly 62 percent of consumers who experienced fraud while hiring home-service professionals did not file complaints with government agencies, online platforms, or consumer grievance mechanisms.
The study was conducted across Delhi-NCR, Mumbai, and Bengaluru and surveyed 1,000 urban consumers. Nearly 47 percent of respondents admitted that they had been clearly scammed at least once during the past two years while hiring home-service providers. Experts believe the actual scale of fraud could be significantly larger, as most incidents remain outside formal reporting systems.
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Common Fraud Mechanics in Urban Hubs
According to the findings, a lack of transparency between service delivery and payment remains one of the biggest drivers of consumer fraud. In many cases, customers reported paying advances only to find the work left incomplete. Others complained about the installation of counterfeit or low-quality spare parts. Additional complaints included inflated final bills, hidden charges, and situations where service providers abandoned work after receiving partial payment.
The survey also revealed that the average financial loss suffered by victims was approximately ₹4,800, while the median loss was around ₹2,400. Because the amounts involved are relatively small, many consumers feel that pursuing formal complaints is not worth the time, effort, or cost involved. About 41 percent of respondents who chose not to report fraud said the financial loss was too minor to justify filing a complaint.
Fears of Retaliation and Lack of Awareness
Other reasons for underreporting were equally concerning. Nearly 28 percent of respondents said they did not know where or how to report such incidents. Around 19 percent cited a lack of confidence in grievance redressal systems, while 12 percent expressed concern that service providers already knew their residential addresses, creating fears of confrontation or retaliation if complaints were filed.
The study identified several recurring fraud patterns. Advance-payment scams followed by job abandonment accounted for roughly 29 percent of reported incidents. The use of counterfeit or inferior spare parts represented 24 percent of cases. Inflated final invoices made up approximately 22 percent, while 15 percent involved incomplete work after receiving partial payment. Disputes relating to property damage and compensation also emerged as a notable category of complaints.
Gender Disparities and Pricing Escalations
Researchers highlighted an important social dimension as well. Women customers were found to be more likely than men to face inflated initial quotations and mid-service price escalations. However, women were also more likely to formally report fraud once they identified deceptive practices, suggesting a greater willingness to pursue consumer remedies.
Consumer protection experts believe that verified digital platforms can significantly reduce the risk of fraud. The survey found that consumers using verified service platforms reported a scam incidence of only 9 percent, compared with 47 percent in the broader unorganised market. The findings underscore the role of formalisation, digital verification, and transparent payment systems in improving consumer safety.
The Path to Policy Formalisation
Experts note that the growth of online booking systems and digital payments has changed the nature of disputes in the home-services industry. While technology has improved convenience, it has also created new opportunities for deceptive practices. Many consumers continue to ignore relatively small financial losses, unintentionally allowing fraudulent operators to remain active and unchallenged.
Industry observers recommend that consumers hire only verified service providers, insist on written estimates before work begins, maintain records of all digital payments, and immediately report suspicious financial activity. They argue that even small-value frauds should be documented because widespread underreporting prevents regulators and policymakers from understanding the true extent of consumer abuse.
The study concludes that simplifying complaint procedures and creating faster mechanisms for resolving low-value consumer disputes could help reduce fraud across the home-services sector. Until such measures become more effective, the report suggests that a significant portion of consumer fraud will continue to remain hidden, leaving many victims to absorb losses quietly rather than seek formal redress.
